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Employee Safety for Staffing Companies & PEOs. Course Objectives. Best practices for Staffing Companies & PEOs Learn to reduce injuries, illnesses, and workers’ compensation costs Improve communication between staffing organizations and host companies

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course objectives
Course Objectives
  • Best practices for Staffing Companies & PEOs
    • Learn to reduce injuries, illnesses, and workers’ compensation costs
    • Improve communication between staffing organizations and host companies
    • Understand OSHA requirements for safety and health, legal issues, and OSHA recordkeeping
course objectives continued
Course Objectives (continued)
  • Best practices for Staffing Companies & PEOs
    • Understand NCCI classifications
    • Evaluate safety of host/client
  • Differences between PEO and staffing company (legal, ownership, and responsibilities)
  • Available resources
course sections
Course Sections
  • 1. Definitions
  • 2. Loss Control Best Practices
  • 3. Legal

Contract worker- Provides a specific service to a company which must include supervision and assumes more responsibilities than a staffing company.

Staffing- Skilled/unskilled workers sent out under client/host regulations, host watches over worker, manages time/task, may or may not want to hire full-time

Associate is preferable to “temp worker.”

terminology continued
Terminology (continued)

Onsite- Temporary worker administration at host/client site although the actual task/work performed for the host is supervised by the host company.

Host company is defined as the company that utilizes temporary workers.

Staffing company is preferred to “temp agency.”

professional employer organization
  • Provide integrated services to manage critical human resource responsibilities and employer risk
  • Establish and maintain an employer relationship with the employees at the client’s work site
  • Contractually assume certain employer rights, responsibilities and risk
staffing employment agency
Staffing Employment Agency

BWC defines “as an employer who is in business of employing individuals for the purpose of utilizing the services of the individuals for a temporary period”

  • Example: BWC contracts with a staffing agency to hire a temporary employee to fill a vacant position
similarities of peos staffing companies
Similarities of PEOs & Staffing Companies
  • Specific requirements are spelled out in a contract
  • Might have additional benefits for employees
    • 401K
    • heath insurance
similarities continued
Similarities (continued)
  • Responsibilities
    • Local, state and federal taxes
    • Employment taxes
  • WC coverage
    • Provided to employees by the temporary staffing company
    • May be provided by PEO
part 2 loss control best practices
Part 2Loss Control Best Practices

Client Risk Assessment

Job Descriptions

Prohibited Jobs

Before Placement Assessment

Loss Prevention Management

loss control best practices continued
Loss Control best Practices (continued)
  • Injury Reduction Strategies
  • Claims Management
  • Safety Questionnaire
  • Drug Testing
client risk assessment
Client Risk Assessment

Written procedures for new client:

  • Details expectations of the client/employer relationship
  • Segregation of responsibilities and authority
client risk assessment continued
Client Risk Assessment (continued)
  • WC carrier pre-approval or documentation of notice (sent to carrier of Staffing Company/PEO)
  • Specific job classification- descriptions
  • Industries/jobs that will not be included in agreement (restricted jobs)
job description
Job Description

Good Job Description includes:

  • Example tasks
  • PPE requirements
  • Safety requirements (e.g. attend safety orientation)
  • Exclusions (e.g. no operation of press brake)
  • Additional hazards (e.g. confined spaces)
possible prohibited jobs industries
Possible Prohibited Jobs/Industries
    • Unsupervised Jobs
    • Roofing
    • Trenching
    • Hazardous waste
    • Biological waste
    • Occupied domiciles
    • Foundry (pours)
  • Prohibited jobs can be determined by either the PEO/Staffing Agency or its Insurance Carrier.
before placement assess client
Before Placement – Assess Client
  • Safety Training – “OSHA Alliance”
  • Safety Reviews
  • Job Description/Prohibited Jobs
  • OSHA Establishment Search
    • www.OSHA.gov
    • Statistics
    • Inspection Data
    • Enter Company Name
    • State
client risk assessment1
Client Risk Assessment

Assessment of client’s WC history

  • Description of business operation
  • List of states (operating)
  • Copy of 3-yr loss run (minimum)
  • OSHA reports
  • Copy of existing safety manual(s)
client risk assessment continued1
Client Risk Assessment (continued)
  • Payroll by class code, tax and/or payroll reports
  • Site assessment of all locations with high hazard exposure
  • Evaluate frequency/severity of claims
loss prevention management injury reduction strategies
Loss Prevention Management – Injury Reduction Strategies

Comply with Loss Prevention Requirements:

  • Written policies/procedures that must be followed by client
  • Documentation of compliance and action taken for non-compliance of client
  • Safety “needs assessment” conducted with all new clients
loss prevention management injury reduction strategies continued
Loss Prevention Management – Injury Reduction Strategies (continued)
  • Provide some type of loss prevention services
  • Have loss prevention services available for client
  • Periodic review of client compliance issues
    • Action plan?
claims management
Claims Management
  • Timely notification of all incidents & injuries
    • Set deadlines for notification
      • Example: 24/48 hrs after incident
    • Provide standard forms for all clients
      • Have client complete during notification of injury
claims management continued
Claims Management (continued)
  • Initial contact with injured workers who miss at least 3 days; then set up regular contact when IW misses more than 7 days
  • Have experienced claims manager regularly review all open claims:
    • Ensure proper management
    • Treatment plan in place (RTW, rehab, physical therapy, etc.)
claims management continued1
Claims Management (continued)
  • Conduct accident investigations
    • Serious injuries/death
    • Repetitive incidents
  • Periodic reviews with client
    • Regarding loss runs or claims analysis
    • Minimum: annually
    • Best practice: monthly
    • Make available periodic loss runs/comparison report
claims management continued2
Claims Management (continued)
  • Establish goals with each claim
    • Work with client to achieve set goals
  • Address employee complaints
  • Conduct post-agreement safety questionnaire
possible safety questionnaire
Possible Safety Questionnaire
  • What safety training did you receive by the host employer prior to starting job?
  • Are you required to wear any personal protective equipment? If so, was it provided?
possible safety questionnaire continued
Possible Safety Questionnaire (continued)
  • Are you currently performing the job functions as described to you by our staff?
  • Do you feel that there are any unsafe aspects or hazards associated with your job? If so, please explain.
drug testing
Drug Testing
  • Minimum of a DFWP Level 1 program
    • Pre-employment testing
    • Reasonable suspicion of drug usage
    • Post-accident


part 3 legal issues
Part 3Legal Issues
  • Workers’ Compensation
  • Violation of a Specific Safety Requirement (VSSR)
  • Manual Classifications
  • Medical Surveillance
  • Safety Training
legal issues continued
Legal Issues (continued)
  • Personal Protective Equipment (PPE)
  • OSHA Requirements
    • Recordkeeping
    • Fines
  • Other Considerations
workers compensation
Workers’ Compensation

Who is responsible for Workers’ Compensation?

Host Employer?

Staffing Employer?


Staffing employer/PEO-hire the employee that is being utilized by the host employer


Who will be responsible for a VSSR?

The host employer will be the employer of record in regards to VSSR filing.

manual numbers
Manual Numbers

Why does the Staffing Agency/PEO need the host employer’s manual number(s)?

  • BWC legal requirement
  • Proper manual claim assignment
  • Payroll reporting
  • BWC ratemaking
  • Service fee determination
osha requirements
OSHA Requirements

To whom do the following OSHA requirements apply?



Medical surveillance

Safety Training (General and Specific)


Whoever provides day-to-day supervision of the employee is responsible for recordkeeping.


Fines may be levied to the host employer and/or staffing agency/PEO depending on the circumstances.

medical surveillance
Medical Surveillance

When medical surveillance or monitoring is necessary, the host employer must offer and perform this requirement.

medical surveillance continued
Medical Surveillance (continued)

The staffing agency/PEO must ensure that the records of the required medical surveillance or evaluations are maintained in accordance with the appropriate OSHA standards.

safety training
Safety Training

What is the general rule for generic training?

The staffing agency/PEOs are expected to provide some generic training.

safety training continued
Safety Training (continued)

Who is responsible for site specific training?

The host employer must still certify that the required training has been provided "when the employee has demonstrated proficiency [to the employer] in the work practices involved."

safety training continued1
Safety Training (continued)

General – Choice (soon to be Alliance)

  • Safe lifting practices
  • Ergonomics
  • Personal protective equipment
  • Electrical safety
  • Machine guarding
  • Fall hazards and protection
  • Chemical hazard communication

Who is responsible for PPE?

  • Host employer is responsible for providing PPE for site-specific hazards to which employees may be exposed.
  • PPE can be a contractional issue between the host employer and staffing agency/PEO, but enforcement is the responsibility of the host employer.
other legal considerations
Other Legal Considerations

What other Legal Consideration must be considered?

  • Intentional Tort
  • Third Party Liability


  • Criminal Liability